Izvorni znanstveni članak
https://doi.org/10.1515/zireb-2016-0009
General Equilibrium Effects of Lower Labor Tax Burden in Croatia
Ozana Nadoveza
orcid.org/0000-0002-3651-7795
; Department of Macroeconomics and Economic Development, University of Zagreb, Faculty of Economics and Business, Zagreb, Croatia.
Tomislav Sekur
; Department of Macroeconomics and Economic Development, University of Zagreb, Faculty of Economics and Business, Zagreb, Croatia.
Marija Beg
orcid.org/0000-0002-7897-8055
; Department of Macroeconomics and Economic Development, University of Zagreb, Faculty of Economics and Business, Zagreb, Croatia.
Sažetak
This paper examines the effects of lower labor tax burden in Croatia by using Computable general equilibrium (CGE) model. It is a 5-sector (households, firms, government, investors and foreigners) model and economy is disaggregated on three highly aggregated sectors. One of the major advantages of CGE modeling is the evaluation of the overall effects of policy changes, shocks and reforms in the economy. We do this by lowering taxes on labor and simulating changes of all endogenous variables in the model simultaneously. Lastly, we provide sensitivity analysis results. Our results suggest that it is possible to encourage domestic production by reducing taxes on labor, but the potential effects on unemployment should be revised as to get more accurate estimates.
Ključne riječi
CGE; small open economy; Croatia; taxes on labor; general equilibrium effects
Hrčak ID:
170558
URI
Datum izdavanja:
15.12.2016.
Posjeta: 1.723 *